2016
DOI: 10.1017/bca.2016.13
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A Simple Stated Preference Tool for Estimating the Value of Travel Time in Rural Africa

Abstract: Despite its importance in benefit-cost analyses in the water supply, transportation, and health care sectors, there are relatively few empirical estimates of the value of travel time savings (VTT) in low-income countries, particularly in rural areas. Analysts instead often rely on a textbook "rule of thumb" of valuing time at 50% of prevailing unskilled wage rates, though these benchmarks have little empirical support in these settings. We estimate the value of travel time through the use of a repeated discret… Show more

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Cited by 13 publications
(18 citation statements)
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“…To place an economic value on this time, we use individual‐level estimates of the value of travel time (VTT) based on results from a simple stated preference experiment where respondents were asked to rank new hypothetical water sources that varied only in distance from home and price per jerrican [see Cook et al ., ]. The results used here are from a latent‐class multinomial logit model.…”
Section: Coping Cost Componentsmentioning
confidence: 99%
See 1 more Smart Citation
“…To place an economic value on this time, we use individual‐level estimates of the value of travel time (VTT) based on results from a simple stated preference experiment where respondents were asked to rank new hypothetical water sources that varied only in distance from home and price per jerrican [see Cook et al ., ]. The results used here are from a latent‐class multinomial logit model.…”
Section: Coping Cost Componentsmentioning
confidence: 99%
“…We also show that there is great heterogeneity in coping costs across households, both due to differences in the amount of time spent collecting water and the value of time saved. Rather than rely solely on assumptions about the value of travel time based on a fraction of wages, we use values predicted from a latent class model estimated with data obtained from a companion stated preference experiment [ Cook et al ., ]. Because enumerators recorded GIS locations of houses and water sources, we are also able to test the sensitivity of estimates of collection time estimates based on reported and observed distances, the first such comparison we are aware of in the coping cost literature.…”
Section: Introductionmentioning
confidence: 99%
“…To our knowledge, however, there are few empirical estimates of the opportunity cost of time spent collecting water in sub-Saharan Africa that are needed to facilitate such investment analysis. (Exceptions include [29] and [30]). This is a clear area for future research.…”
Section: Discussionmentioning
confidence: 99%
“…Cook et al . [] provide a comprehensive overview of estimates of the value of travel time in low‐income countries. They begin with an overview of studies from the transportation sector, which find value of time estimates ranging from 18–86% of wages.…”
Section: Coping Costs Modeling Strategy and Calculationmentioning
confidence: 99%
“…Cook et al . [] also review three papers that value time within the context of water collection. Whittington et al .…”
Section: Coping Costs Modeling Strategy and Calculationmentioning
confidence: 99%